Wednesday, February 07, 2007

DJIA Hits Another All-Time High, S&P 500 at 6-year High on More Positive Economic Data, Falling Energy Prices

S&P 500 1,450.02 +.14%
DJIA 12,666.87 unch.
NASDAQ 2,490.50 +.77%
Russell 2000 816.20 +.71%
Wilshire 5000 14,622.55 +.23%
Russell 1000 Growth 572.40 +.32%
Russell 1000 Value 835.96 +.06%
Morgan Stanley Consumer 708.49 -.26%
Morgan Stanley Cyclical 946.13 +.12%
Morgan Stanley Technology 576.80 +1.50%
Transports 4,979.84 +.32%
Utilities 469.80 +.03%
MSCI Emerging Markets 116.30 +.03%

Total Put/Call .86 +1.18%
NYSE Arms 1.22 -3.50%
Volatility(VIX) 10.32 -3.10%
ISE Sentiment 113.0 -19.86%

Futures Spot Prices
Crude Oil 57.84 -1.80%
Reformulated Gasoline 154.50 -1.75%
Natural Gas 7.73 +1.55%
Heating Oil 167.05 -1.21%
Gold 656.40 -.35%
Base Metals 216.82 -1.55%
Copper 245.95 -1.48%

10-year US Treasury Yield 4.74% -2 basis points
US Dollar 84.75 -.02%
CRB Index 298.87 -.73%

Leading Sectors
Networking +2.14%
REITs +1.99%
Semis +1.59%

Lagging Sectors
Gold & Silver -.51%
Oil Service -.73%
Energy -.74%

Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play

Afternoon Recommendations
Piper Jaffray:
- Upgraded (IFIN) to Outperform.

Afternoon/Evening Headlines
- US technology stocks rallied, pushing the S&P 500 to another six-year high and the Nasdaq to its eighth gain in nine days, after Cisco Systems forecast sales that beat estimates.
- Gasoline futures fell after a government report showed that inventories of the motor fuel rose to their highest in almost eight years. Crude oil also fell more than $2/bbl. from session highs.
- Brazil and the US, the world’s biggest ethanol producers and consumers, plan to help an as-yet unselected Central America country produce ethanol as they seek to bolster the international market for the fuel.
- Corn futures fell to a three-week low in Chicago on speculation that demand for US supplies will slow after a rally in prices last year and the arrival of new crops being harvested in South America.
- Varian Medical(VAR) will replace Equity Office Properties(EOP) in the S&P 500, S&P said.
- Walt Disney(DIS) said first-quarter profit more than doubled on asset sales and income from last year’s two biggest-selling DVD releases, “Pirates of the Caribbean” and “Cars.” The stock rose .50 in after-hours trading.
- Electronic Data Systems(EDS) said fourth-quarter profit almost doubled after it generated more revenue from government orders and reduced costs. The stock rose 4.5% after-hours.
- EMC Corp.(EMC) said it will offer 10% of its VMware business unit in an IPO. The stock soared 7.7% after-hours.
- A newly completed map of the horse genome will give scientists a better understanding of human genetics, researchers said.
- Hedge fund SAC Capital Partners is reportedly stepping up its private equity practice by hiring former Ripplewood Holdings managing director Peter Berger.
- Merrill Lynch(MER) introduced an index that mimics a hedge-fund trading strategy that exploits imperfect forecasts of US stock volatility.

BOTTOM LINE: The Portfolio finished higher today on gains in my Semi longs, Telecom longs, Biotech longs, Computer longs, Retail longs and Commodity shorts. I did not trade in the final hour, thus leaving the Portfolio 100% net long. The tone of the market was modestly positive today as the advance/decline line finished higher, most sectors rose and volume was heavy. Measures of investor anxiety were mixed into the close. Today's overall market action was modestly bullish. The tech sector outperformed, rising 1.5%. Many "growth" stocks surged 3%-4%. The Naz is already 3.0% higher year to date. Oil is down $1.17/bbl., at session lows. The dollar was stable and the 10-year yield fell another 2 basis points despite stock gains. The NYSE Arms rose to above-average levels throughout the day, while the ISE Sentiment Index plunged 20% to a low 113.0. I suspect stocks will build on today's gains by the weekend.

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